• The real price for wheat was 22 percent above Q1-2017 levels: crops suffered dryness in the United States and cold weather in Europe and the Commonwealth of Independent States, leaving production forecasts open to a downward revision.3 World ending stocks remain at record levels.

• In Q4-2017, the global food price index of FAO dropped by 2 percent compared to Q3 and remained at approximately the same level as one year ago.
In contrast, the cereal price index rose by 7.6 percent in comparison to Q4-2016.

• Although the real price2 of wheat fell by 2 percent from Q3-2017, prices are still 19 percent higher than in 2016, even though world ending stocks of wheat are at record levels.

• In Q4, the real price of maize was low at US$119/ mt with only slight variation from Q3-2017 and the previous year.

Despite recent rainfall, dryness remains in parts of South Africa and Madagascar

Africa Weather Hazards

Seasonal rainfall during early November has helped alleviate early season moisture deficits across Somalia and eastern Kenya. However, deficits in southern Somalia and eastern Kenya remain.
The forecast below-average rain next week is likely strengthen moisture deficits.